Different Platforms To Generate Income.
The book rich dad poor dad involves the concept of the cash flow quadrant, the four different cash flows include; employees, small business owners, big business owners and investors. In order to learn more about these issues, you may need to view a website page.
For you to make more money as a person, then you are required to think outside the platform of being employed. Having your own business is key, whereby you are able to control your own paycheck rather than letting another person determine what your income will be and when to get it. In looking at these different categories of making money, you will be able to have a clear picture of your current position and with regard to the different categories look at where you would like to position yourself in the future in accordance to the cash flow quadrant.
The first quadrant involves the employee. An employee is the most common way of making money for most people even though it is the most in effective way to make money as it is less secure and that the employees trade their valuable time to benefit the employers. Great tax burdens are laid to employees rather than to employers. Being on this cash flow quadrant limits you as person on your financial and career growth, however it also has some great benefits as it is one of the most secure, most stable, safe and most common way to make a living.
The second cash flow quadrant involve the small business owners, having a small business, mostly results to a substantial reward to the owner. The main problem with being an employee or self-employed is that you are directly swapping time for money, and when you aren’t swapping your time, you aren’t making any money. Here your financial stability is always on a bargain, because it is not always the case that you will be fit to do the job.
In the third quadrant we have big business owners. The greatest limitations experienced by small business owner is the limit of time as there is always a ceiling to their earnings this is what normally separates the small business owners to the big business owners. The big business owners normally establish systems to create their wealth, for instance, instead of selling ice cream on the roads by exchanging their time for the job to earn, they will invest on some good capital to buy five different ice cream tracks and thus employ people on those tracks. Big businesses owners have a wide source of their income for instance they would always choose to invest more to a business and earn more from employees than employ themselves for their limited time. On this way the big business owners are able to earn more and secure on their source of income.
An investor occupies the last quadrant. It is a person who invest greatly in projects so as to have great returns in the future. An investor puts capital as a foundation to future earnings. It involves a lot of risks and thus has very few participants.